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'Temporary' Tax Code Puts Nation in a Lasting Bind
WSJ ^ | 12/14/10 | JOHN D. MCKINNON, GARY FIELDS And LAURA SAUNDERS

Posted on 12/14/2010 6:39:38 PM PST by Nachum

WASHINGTON—Welcome to the world of the temporary tax code.

In the late 1990s, there were typically fewer than a dozen tax provisions that had just a limited lease on life and needed to be renewed every year or so.

Today there are 141.

Now Congress, taking up a deal worked out between the Obama administration and Republican leaders, is poised to turn the whole personal income-tax system into something of a temporary structure. The plan embraces a broad range of provisions—an extension of Bush-era rates, a new estate-tax formula—but for only two years. A payroll-tax cut in the bill is for a single year.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Crime/Corruption; Government; News/Current Events
KEYWORDS: code; tax; temporary
Obamanomics
1 posted on 12/14/2010 6:39:43 PM PST by Nachum
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To: Jet Jaguar; NorwegianViking; ExTexasRedhead; HollyB; FromLori; EricTheRed_VocalMinority; ...

The list, ping

Let me know if you would like to be on or off the ping list

http://www.nachumlist.com/


2 posted on 12/14/2010 6:40:12 PM PST by Nachum (The complete Obama list at www.nachumlist.com)
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To: Nachum

Yike !


3 posted on 12/14/2010 6:44:31 PM PST by Eric in the Ozarks (Impeachment !)
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To: Nachum
In the late 1990s, there were typically fewer than a dozen tax provisions that had just a limited lease on life and needed to be renewed every year or so.

It's just good engineering. When you have to maintain a house of cards, it's good to have flexibility. Of course, no one thought about hysterisis, and over-correction is already here. It will be classic Tacoma Narrows Bridge kind of failure.

But no-one can foresee that.... in Washington.

/johnny

4 posted on 12/14/2010 6:46:27 PM PST by JRandomFreeper (Gone Galt)
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To: Nachum

The GOP’s new slogan: “Bringing You Expiring Tax Cuts since 2001”


5 posted on 12/14/2010 6:46:44 PM PST by campaignPete R-CT (Palin '12 begins in '11. In western New Hampshire pour moi.)
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To: Nachum
We must move toward a temporary Federal government. This thing s out of control. I just heard Senator Oral Hatch on Hannity. He is ready to give away the store. What an emasculated little man... The GOP had better clean house fast...
6 posted on 12/14/2010 6:55:17 PM PST by April Lexington (Study the Constitution so you know what they are taking away!)
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To: Nachum

“A payroll-tax cut in the bill”

Correct me if I am wrong but-don’t they mean a cut on funds that were supposed to go to an already underfunded (and on the path to bankruptcy) Social Security system? They are not talking about cutting income tax but instead just the tax that was meant to fund ss.


7 posted on 12/14/2010 6:56:02 PM PST by icwhatudo ("laws requiring compulsory abortion could be ustained under the constitution"-Obama official)
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To: campaignPete R-CT
The GOP’s new slogan: “Bringing You Expiring Tax Cuts since 2001”

I'm sure they would have liked to have started in 1989, but it was too soon after Reagan.

The problem with W's tax cuts all along was that they were intended to temporarily spur demand or to buy votes, not to encourage investment or sustainable economic growth. The one exception was the dividends tax cut.

8 posted on 12/14/2010 6:56:12 PM PST by Moonman62 (Half of all Americans are above average. Politicians come from the other half.)
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To: Nachum
The "temporary" approach means business won't hire and grow. There is too much risk in the uncertainty. Maintaining the current rates will simply maintain the bleed of jobs as the politicians spend with reckless abandon. Actual rate cuts that are guaranteed to hold for 10 years would instill stability and growth.
9 posted on 12/14/2010 7:54:05 PM PST by Myrddin
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To: Nachum

Obamanomics - the Uncertainty Factor

How to increase business risk, thereby keeping the economy in permanent crisis.


10 posted on 12/15/2010 4:57:35 AM PST by 1010RD (First Do No Harm)
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